RUAPEHU ALPINE LIFTS WATERSHED MEETING

Where to from here?

20 June 2023

Hello everyone

Firstly we would like to thank everyone for their support thus far. Pure Tūroa is still 100% committed to achieving a successful outcome for Tūroa.

We’d like to update everyone on the outcome of the Ruapehu Alpine Lifts Ltd (RAL) ‘watershed meeting’ held by PwC Administrators today. The purpose of this meeting was for creditors to vote on three resolutions that effectively boiled down to the following two options:

1. The ‘Deed of Company Arrangement’ proposal put forward by the Ruapehu Skifield Stakeholders Association (RSSA) be adopted, resulting in the ski fields’ assets being retained by RAL. The proposal was conditional and lacked sufficient funding sources or a viable business plan.

2. RAL to be put into liquidation, with the assets of RAL to be sold to the bidders as recommended by PwC and MBIE under a ‘prepackaged liquidation’ mechanism (ie: to Pure Tūroa Ltd for Tūroa assets and Whakapapa Holdings Ltd for Whakapapa assets).

For our proposal to take effect today, we needed option 2 above to be approved. This would have allowed for us to move forward with our Sale & Purchase Agreement for the Tūroa assets and for us to begin operations immediately subject to finalising agreements with DoC and Iwi, in respect of which there has been a huge amount of work done.

Unfortunately this was not to be. We believe this was heavily influenced by RSSA who lobbied life pass holders to choose option 1 as a ‘protest vote’. Neither option went through, meaning RAL has been handed back to its directors. This result has created an extremely unsettling situation for RAL current staff and all local businesses who will be affected if the mountain is unable to operate.

It is highly likely that the directors will put the company into liquidation with liquidators appointed by the High Court tomorrow. This is expected as the RAL directors have made it clear they are not in a position to operate the business given its hopelessly insolvent, as PwC say.

We’re acutely aware of the stress in our community around this decision as right now, there is no certainty around the future of Ruapehu snow sports. However, there is a pathway forward.

Once appointed as liquidators, PwC has indicated they will then proceed immediately with Pure Tūroa and Whakapapa Holdings for settlement of their respective sale and purchase agreements.

The Crown is also working closely with Iwi to enable assignment of the DoC Concessions to Pure Tūroa and Whakapapa Holdings in the very near future.

Given the above, Pure Tūroa Ltd is very confident that we’ll get operations underway towards the end of next week. In the meantime PwC will operate the business as liquidators following the court hearing. RAL staff will remain employed and be paid without disruption.

It’s a difficult and stressful situation for all involved. There’s been a huge amount of work done by RAL staff to get the ski fields ready for the 2023 season. Pure Tūroa has been working around the clock with all stakeholders to ensure an early July open date. The RSSA action has resulted in a delay but not an end. It’s an expensive and emotionally difficult delay for many but we’re confident we’ll work through this in partnership with our stakeholders.

We want to reassure Iwi, RAL staff, and local businesses that we’re 100% committed to getting this done and will keep you all updated as we can.

Thanks for your continued support.

The Pure Tūroa Team